New car market stalled last month costing £350 million in turnover – London Business News | Londonlovesbusiness.com

The Society of Motor Manufacturers and Traders (SMMT) figures reveals that new car registrations fell by 0.6% last month.

The SMMT figures shows that in October 144,288 new cars were registered compared to 153,529 in the same period last year which is a £350 million loss in turnover for the industry.

Petrol and diesel deliveries were down 14.2% and 20.5% and there was a 1.6% fall in hybrid electric vehicles and a 3.2% drop in plug-in hybrids EVs.

Pure electric vehicles grew by 24.5% as a result of new models and discounting on new cars.

SMMT chief executive Mike Hawes said, “Massive manufacturer investment in model choice and market support is helping make the UK the second largest EV market in Europe.

“That transition, however, must not perversely slow down the reduction of carbon emissions from road transport.

“Fleet renewal across the market remains the quickest way to decarbonise, so diminishing overall uptake is not good news for the economy, for investment or for the environment.

“EVs already work for many people and businesses, but to shift the entire market at the pace demanded requires significant intervention on incentives, infrastructure and regulation.”

Ian Plummer, commercial director at online vehicle marketplace Auto Trader, said: “October new car sales are lagging, although electric vehicles are taking a bigger share of the market thanks to heavy discounting.

“The subdued petrol and diesel sales are also likely to be driven by the efforts of manufacturers to hit EV sales targets under the zero emissions vehicles (Zev) mandate.

“Manufacturers are making significant efforts to bridge the price gap to electrics – as shown by the 12% discounts on Auto Trader’s site in October – but the market is still not achieving the volumes needed.”